Page 8 - AAA SEPTEMBER - OCOTBER 2017 Online Magazine

COVER STORY AIR FARES

weeks’ salary. During the same period, the part with as little as $10 one-way for the new the bus and a ban on anything except what will
personal space has stayed relatively static. product and receive priority boarding, at fit under the seat in front such as a purse, very
PY passengers also get a dedicated cabin, least 25 per cent more legroom in exit or first small backpack or laptop bag. Any other bag
typically Business Class food and wines and row seats, along with what the airline calls must be checked as a cost of US$25 upwards.
dedicated check-in. “preferred” overhead lockers. On short-haul However, once on-board, passengers on the
The AA&A investigation has thrown up international flights, passengers get access Basic Economy Fare will still get the same
some fascinating numbers that put today’s to dedicated check-in and the cost starts at complimentary soda, water and snacks as
fares in perspective. The weeks of salary $50 one-way. For long-haul on the airline’s well as inflight entertainment.
required to buy a return economy fare to Boeing 777-300ERs, there are five rows of The fact that there has been a dramatic
London in 1970 - 15.7- would buy two first class Economy Space + seating in a secluded cabin reduction in fares for US passengers is
tickets today. The number of weeks’ salary area behind premium economy. The package something even consumer groups cannot
for an economy fare in 1990 is almost the also includes premium noise cancelling ignore. Since 1970, the average yearly salary
same as business class today, while weeks to headphones and a guaranteed first meal in the US has risen 370 per cent to US$44,000
earn an economy ticket in 2000 is the same as choice. Prices vary by route, market, and fare while the return transcontinental airfare with
premium economy in 2017. What well-meaning type with the long-haul option topping out at American Airlines (midweek April 2017) has
consumer groups also fail to mention are the $165 one way. The option appears as an extra risen only 33 per cent to US$400 return.
host of options that are offered to economy during the booking process. That fare is not a special nor the new Basic
passengers today for more legroom and even Most of the criticism by consumer groups Economy. Expressed in number of weeks to
a spare seat. Air New Zealand and Virgin in the U.S. are focused on the big three – earn, in 1970 it took an American two weeks
Australia are excellent cases in point. The United, Delta and American - rolling out what to buy a transcontinental return flight. Today,
Kiwi airline introduced the Skycouch set of is called Basic Economy. The airlines argue it’s just under half a week’s salary. Expressed
three seats that convert into a bed in 2010. they are simply matching the fares of the another way by the US airline association
For a May flight from Perth, Australia to Los Ultra-Low-Cost airlines – Spirit, Frontier and Airlines for America (A4A), the average return
Angeles return, the fare (for the three seats) Allegiant Air. fare adjusted to 2015 dollars in 1980 was
for one adult and two children was a total of In a statement, American Airlines US$650 and in 2015 it was US$375. Consumer
A$3473.68. The fare for two adults return was President Robert Isom said: “American groups are also lashing out at US airlines
A$3635.12. The airline also sells any vacant Airlines now has something to offer every in particular over the recent robust profits,
economy seats for about $100 a sector. Its customer, from those who want simple, but on average, airlines only retain US$7.54
premium economy zone, which started with low-price travel to those who want an ultra- for every passenger carried, according to
just 12 seats on a 747 in 2005, is now 44 seats premium experience via First Class.” He International Air Transport Association
on the 777-300ER. added: “Importantly, this new fare product (IATA).
Virgin Australia not only offers Premium also gives American the ability to compete
Economy but has also added Economy Space more effectively with the growing number of Industry Profits are On the Rise
+ and added options to make it more enticing. ultra-low-cost carriers.” There is no new cabin For 2016, the industry made around US$36
On domestic routes, passengers need only – just unpopular centre seats at the back of billion, which is a record, and also registered

leFt: Sir Freddie Laker. Laker
Airways photo colorised by
Benoit Vienne
opposite top: Air New
Zealand’s Economy Skycouch

opposite BottoM: Air New
Zealand’s Business Premier
8 ASIAN AIRLINES & AEROSPACE SEPTEMBER / OCTOBER 2017 WWW.GBP.COM.SG/AAA